Any tax tips for craft fair sellers?

Taxes can feel overwhelming, especially when you juggle making, selling, and marketing. You want a clear checklist to follow.

The IRS generally requires individuals to report all income earned from business activities, regardless of the amount. While certain thresholds (like the $600 1099-K limit) trigger automatic reporting from payment processors to the IRS, they do not necessarily define a vendor's individual tax liability. Additionally, while business expenses and reinvestments may reduce taxable profit, they do not automatically eliminate tax obligations. It is important to consult IRS Publication 334 (Tax Guide for Small Business) or a CPA to understand how self-employment taxes and income reporting apply to your situation.

Use this quick checklist: register for permits, set tax rates in your POS, record sales and expenses, save receipts, and schedule filing reminders. Review profit quarterly and set aside funds for taxes. These habits keep your business steady and compliant.